FOR IMMEDIATE RELEASE CONTACT: Trent Duffy

April 4, 2001 (202) 225-8933

WASHINGTON – The U.S. House of Representatives today approved by a bipartisan vote of 274-154 a bill to phase down rates and repeal the federal estate, gift, and generation-skipping transfer tax over the next 10 years. H.R. 8 would provide $185.5 billion over 10 years in tax relief.

"Repealing the death tax is a bipartisan goal. This bill achieves that goal. Repealing the estate tax will lift an especially unfair burden from family farms and small businesses," said Chairman Thomas.

Phase Down Rates and Repeal the Estate, Gift, and Generation-Skipping Transfer Tax: The plan will phase down rates and repeal the federal estate, gift, and generation-skipping transfer taxes within 10 years. The plan would also simplify portions of the generation skipping transfer tax rules prior to repeal. A Joint Committee on Taxation description of H.R. 8 can be found on their website at www.house.gov/jct

According to the National Federation of Independent Business (NFIB), one-third of small-business owners today will have to sell outright or liquidate a part of their firm to pay estate taxes. Half of those who must liquidate to pay the IRS will each have to eliminate 30 or more jobs.

According to NFIB, more than 70% of family businesses do not survive the second generation and 87% do not make it to the third generation. Sixty percent of small-business owners report that they would create new jobs over the coming year if estate taxes were eliminated.

According to the American Farm Bureau, ninety-nine percent of U.S. farms are owned by individuals, family partnerships or family corporations. About half of farm and ranch operators are 55 years or older and are approaching the time when they will transfer their farms and ranches to their children.

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